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DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis

NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD

27.7  -0.9 (-3.15%)

After market: 27.7 0 (0%)

Fundamental Rating

5

Taking everything into account, DBX scores 5 out of 10 in our fundamental rating. DBX was compared to 282 industry peers in the Software industry. While DBX belongs to the best of the industry regarding profitability, there are concerns on its financial health. DBX may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

DBX had positive earnings in the past year.
DBX had a positive operating cash flow in the past year.
DBX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DBX had a positive operating cash flow.
DBX Yearly Net Income VS EBIT VS OCF VS FCFDBX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M 800M

1.2 Ratios

Looking at the Return On Assets, with a value of 15.90%, DBX belongs to the top of the industry, outperforming 92.20% of the companies in the same industry.
DBX has a better Return On Invested Capital (40.08%) than 98.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is significantly above the industry average of 12.26%.
The last Return On Invested Capital (40.08%) for DBX is above the 3 year average (17.97%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 15.9%
ROE N/A
ROIC 40.08%
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
DBX Yearly ROA, ROE, ROICDBX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200 -250

1.3 Margins

The Profit Margin of DBX (18.50%) is better than 85.82% of its industry peers.
DBX's Profit Margin has improved in the last couple of years.
DBX has a better Operating Margin (20.72%) than 87.94% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
DBX has a better Gross Margin (82.06%) than 87.94% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 20.72%
PM (TTM) 18.5%
GM 82.06%
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
DBX Yearly Profit, Operating, Gross MarginsDBX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DBX is creating value.
The number of shares outstanding for DBX has been reduced compared to 1 year ago.
The number of shares outstanding for DBX has been reduced compared to 5 years ago.
Compared to 1 year ago, DBX has a worse debt to assets ratio.
DBX Yearly Shares OutstandingDBX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
DBX Yearly Total Debt VS Total AssetsDBX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 0.83, we must say that DBX is in the distress zone and has some risk of bankruptcy.
DBX has a worse Altman-Z score (0.83) than 64.89% of its industry peers.
DBX has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as DBX would need 3.13 years to pay back of all of its debts.
DBX has a Debt to FCF ratio of 3.13. This is in the better half of the industry: DBX outperforms 64.18% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.13
Altman-Z 0.83
ROIC/WACC5.32
WACC7.54%
DBX Yearly LT Debt VS Equity VS FCFDBX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

DBX has a Current Ratio of 0.73. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
DBX has a Current ratio of 0.73. This is amonst the worse of the industry: DBX underperforms 84.40% of its industry peers.
DBX has a Quick Ratio of 0.73. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
DBX's Quick ratio of 0.73 is on the low side compared to the rest of the industry. DBX is outperformed by 84.40% of its industry peers.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.73
DBX Yearly Current Assets VS Current LiabilitesDBX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 22.33% over the past year.
DBX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.64% yearly.
Looking at the last year, DBX shows a small growth in Revenue. The Revenue has grown by 0.79% in the last year.
Measured over the past years, DBX shows a quite strong growth in Revenue. The Revenue has been growing by 8.93% on average per year.
EPS 1Y (TTM)22.33%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%20.69%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.05%

3.2 Future

DBX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.35% yearly.
DBX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.17% yearly.
EPS Next Y5.84%
EPS Next 2Y6.7%
EPS Next 3Y5.07%
EPS Next 5Y3.35%
Revenue Next Year-2.45%
Revenue Next 2Y-1.25%
Revenue Next 3Y-1.06%
Revenue Next 5Y-1.17%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DBX Yearly Revenue VS EstimatesDBX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B 2B 2.5B
DBX Yearly EPS VS EstimatesDBX Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.53, which indicates a very decent valuation of DBX.
91.84% of the companies in the same industry are more expensive than DBX, based on the Price/Earnings ratio.
DBX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 9.69, the valuation of DBX can be described as very reasonable.
91.84% of the companies in the same industry are more expensive than DBX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DBX to the average of the S&P500 Index (21.70), we can say DBX is valued rather cheaply.
Industry RankSector Rank
PE 10.53
Fwd PE 9.69
DBX Price Earnings VS Forward Price EarningsDBX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

87.94% of the companies in the same industry are more expensive than DBX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DBX is valued cheaper than 95.74% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.81
EV/EBITDA 13.55
DBX Per share dataDBX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DBX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)0.27
EPS Next 2Y6.7%
EPS Next 3Y5.07%

0

5. Dividend

5.1 Amount

No dividends for DBX!.
Industry RankSector Rank
Dividend Yield N/A

DROPBOX INC-CLASS A

NASDAQ:DBX (7/1/2025, 8:15:04 PM)

After market: 27.7 0 (0%)

27.7

-0.9 (-3.15%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners113.91%
Inst Owner Change-4.25%
Ins Owners5.89%
Ins Owner Change5.77%
Market Cap7.57B
Analysts51.58
Price Target28.74 (3.75%)
Short Float %11.39%
Short Ratio5.87
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.59%
Min EPS beat(2)11.44%
Max EPS beat(2)15.74%
EPS beat(4)4
Avg EPS beat(4)13.09%
Min EPS beat(4)11.44%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)11.89%
EPS beat(12)12
Avg EPS beat(12)10.52%
EPS beat(16)16
Avg EPS beat(16)10.15%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)-0.25%
Revenue beat(4)0
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)-0.25%
Revenue beat(8)1
Avg Revenue beat(8)-0.29%
Revenue beat(12)2
Avg Revenue beat(12)-0.21%
Revenue beat(16)5
Avg Revenue beat(16)-0.14%
PT rev (1m)1.42%
PT rev (3m)-0.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 10.53
Fwd PE 9.69
P/S 2.98
P/FCF 8.81
P/OCF 8.67
P/B N/A
P/tB N/A
EV/EBITDA 13.55
EPS(TTM)2.63
EY9.49%
EPS(NY)2.86
Fwd EY10.32%
FCF(TTM)3.14
FCFY11.35%
OCF(TTM)3.19
OCFY11.53%
SpS9.31
BVpS-3.94
TBVpS-5.74
PEG (NY)1.8
PEG (5Y)0.27
Profitability
Industry RankSector Rank
ROA 15.9%
ROE N/A
ROCE 47.01%
ROIC 40.08%
ROICexc N/A
ROICexgc N/A
OM 20.72%
PM (TTM) 18.5%
GM 82.06%
FCFM 33.77%
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
ROICexc(3y)69.99%
ROICexc(5y)80.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.07%
ROCE(5y)17.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.6%
ROICexc growth 5YN/A
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
F-Score5
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.13
Debt/EBITDA 2.77
Cap/Depr 9.72%
Cap/Sales 0.55%
Interest Coverage 250
Cash Conversion 130.09%
Profit Quality 182.52%
Current Ratio 0.73
Quick Ratio 0.73
Altman-Z 0.83
F-Score5
WACC7.54%
ROIC/WACC5.32
Cap/Depr(3y)17.74%
Cap/Depr(5y)24.54%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.78%
Profit Quality(3y)165.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.33%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%20.69%
EPS Next Y5.84%
EPS Next 2Y6.7%
EPS Next 3Y5.07%
EPS Next 5Y3.35%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.05%
Revenue Next Year-2.45%
Revenue Next 2Y-1.25%
Revenue Next 3Y-1.06%
Revenue Next 5Y-1.17%
EBIT growth 1Y18.9%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year20.67%
EBIT Next 3Y3.93%
EBIT Next 5Y8.46%
FCF growth 1Y11.52%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y9.63%
OCF growth 3Y7%
OCF growth 5Y11.09%